financial results and analysis for the year ended march 31 ... · vancouver island technology park...

Financial Results and Analysis for the Year Ended March 31, 2014 on a Fund Accounting Basis

Presentation of Management Information

To enhance accountability, budgetary control and stewardship of resources, the university maintains separate funds of assets, liabilities, revenues and expenditures for its many activities. Fund accounting is used by the university for its operating budget allocations and to ensure that restricted grants, donations and other contributions are spent only for the purposes intended. These funds are grouped as General Operating, Ancillary Enterprises, Specific Purposes, Sponsored Research, Capital and Endowment funds and are defined as follows:

The General Operating Fund reports revenue and expense related to the general operations of the university.

The Ancillary Enterprises Fund reports revenue and expense related to service operations that are expected to function on a self-supporting basis. These operations comprise the bookstore, food services, student residences, parking services, child care services,donated property rental, hotel and brew-pub operations, and the Vancouver Island Technology Park.

The Specific Purposes Fund accounts for revenue and expense relating to contract services, special projects and endowment funds.

The Sponsored Research Fund accounts for monies designated for the support of research.

The Capital Fund accounts for monies designated for the acquisition of capital assets and major renovations. Where moniesdesignated for capital use are received as part of the resources for general operations, ancillary enterprises, specific purposes andsponsored research activities - generally for equipment, furnishings, computer equipment and library holdings - the revenue andexpense related to those assets are accounted for in those respective funds.

The Endowment assets, held as invested principal, comprise the accumulation of endowment contributions and the portion ofinvestment income that is required by the donors and the Board to be added to the fund to offset the eroding effect of inflation.

The university conducts certain activities through related entities. These financial statements consolidate the accounts of four wholly owned subsidiaries of the university:

UVic Industry Partnerships (formerly University of Victoria Innovation and Development Corporation) which assists with intellectualproperty management and commercialization of research discoveries.

University of Victoria Properties Investments Inc. which manages the university’s real estate holdings including the Vancouver IslandTechnology Park Trust.

Ocean Networks Canada Society which manages the university’s VENUS and NEPTUNE ocean observatories.

Pacific Climate Impacts Consortium which stimulates collaboration to produce climate information for education, policy and decisionmaking.

The financial statements consolidate the accounts of the University of Victoria Long Term Disability Trust (LTD Trust) which administers an employee benefit plan on behalf of the university’s faculty and administrative professional staff.

The financial statements also consolidate the accounts of related not-for-profit organizations whose activities benefit the University:

University of Victoria Foundation, the Foundation for the University of Victoria, and the U.S. Foundation for the University of Victoriawhich encourage financial support of the University and administer the University’s endowment funds.

The operations of University of Victoria Properties Investments Inc. are reported in Schedule B as Ancillary Enterprises, Ocean Networks Canada Society and the Pacific Climate Impacts Consortium are reported as Sponsored Research, while the operations of the other five entities are reported as Specific Purposes.

The financial statements proportionately consolidate the accounts of the following joint ventures:

Tri-Universities Meson Facility (TRIUMF) which operates a research facility for sub-atomic physics located at the University of BritishColumbia. The financial statements include the University’s 9.09% interest.

Western Canadian Universities Marine Sciences Society (WCUMSS) which operates a marine research facility at Bamfield on the westcoast of Vancouver Island. The financial statements include the University’s 20% interest.

The financial statements include the accounts of the University’s two profit-oriented subsidiaries using the equity method of accounting:

Heritage Realty Properties Ltd. which manages the property rental and downtown hotel and brew-pub operation donated by the lateMichael C. Williams.

Vancouver Island Technology Park Trust which provides leased space to technology companies on Vancouver Island.

All entities have a fiscal year end of March 31 with the exception of Heritage Realty Properties Ltd. which has a December 31 year end.

Balance Sheet – Statement 1

A key feature of fund accounting is that plant or capital assets are recorded on the balance sheet without amortization, unlike the accounting treatment within the external audited financial statements. Treatment within fund accounting is to record, at original cost, buildings, land and site development until disposal while equipment and furnishings are written off after 8 years.

Key balance sheet highlights are as follows:

Total assets increased by $66.8M while liabilities increased by $17.6M. Fund balances increased by $20.2M and equity in plant assetsgrew by $29M.

Endowment investments are recorded at fair value and have increased by $35.4M to $357.1M. The $35.4M increase is made up asfollows:

Donations $4.3M Investment income 45.1M Disbursements (fees and awards) (13.7)M Changes in receivables/payables (0.3)M

$35.4M

Capital assets increased by $37.2M with increases in buildings of $44.8M and library holdings by $3.3M. The majority of the increase inbuildings ($31.8M) was related to the CARSA project. Equipment and furnishings write offs exceeded acquisitions by $11.2M

Long term debt increased by $8.3M resulting from new additional debt of $10M related to the CARSA/Parkade Project less regularlyscheduled debt payments.

Funds held for employee future benefits, excluding any unfunded portion, increased by $1.7M to $20.3M and are made up as follows:

Vested sick leave benefits $3.4M Supplemental pension obligations 5.3M Group life insurance 1.5M LTD liability 10.1M

$20.3M

Endowment principal funds, held primarily in the UVic Foundation, increased by $8.1M due to external donations of $4.1M, UVictransfers of $156K and capitalized investment income of $3.8M.

Equity in plant assets increased by $29M due to capital additions of $69M and debt repayment of $1.8M less $10M of capital borrowingand $31.8M of equipment, furnishings and library holdings written off.

Statement of Appropriated Expendable Balances – Statement 2 For over 30 years, departments have been asked to save (i.e., to appropriate) from their annual operating budgets sufficient funds to replace computers and other equipment. Interest is paid on equipment reserve balances in order to encourage savings and during the year the interest allocated was 1%. Statement 2 summarizes these replacement appropriations. The university also has a carry forward policy whereby departments who do not spend all of their base General Operating Fund allocation in a year have it appropriated at the Faculty level for

spending in future years. These two policies permit departments to plan for new projects, restructuring, and equipment needs over a longer timeframe. Should a department incur a deficit in a fiscal year, that deficit becomes a first charge on its operating budget for the following year. During 2012-13, the Budget Office implemented a new system to categorize unspent carry forward balances according to how departments plan to use these balances in the future. Schedule 2 reflects the required departmental reporting structure.

Since the university’s provincial operating grant and tuition fees should not subsidize Ancillary operations, each ancillary enterprise must budget to break even, including a provision for periodic renovation replacement and expansion of its facilities. As such, there are appropriated funds from Ancillary operations in order to be able to invest in equipment replacement and capital improvements.

Due to restrictions in the ability of the university to borrow externally, appropriated fund balances are used on a temporary basis to fund capital projects that will generate future revenues from which to repay the internal loan (e.g., residences). Total appropriated expendable funds were as follows:

(in thousands of dollars) 2014 2013

General operating 129,438 127,316

Ancillary enterprises 17,688 15,006

Less loans for Capital (36,941) (23,552)

Total 110,185 118,770

The following charts show the distribution of the appropriated funds (reserves) within the major categories of: capital, equipment, carry forward1, library prepaid and insurance. It also shows how these reserves have changed over time.

1 This category includes program development and operation support, research support, student assistance and financial aid, employee obligations, training

and support, other commitments, contingency and the externally funded Island Medical Program.

As shown in the table above, total operating fund appropriations increased by $2.1M in 2014. This increase is a result of additional funds set aside for capital and equipment ($5.5M) which was offset by a net decrease in carry forward and other funds ($3.4M). Within carry forward funds significant changes included an increase in funds set aside for Program Development and Operation Support ($2.6M) and decreases in Student Assistance and Financial Aid ($2.7M), Research Support ($1.7M), Other Commitments ($1.8M) and Externally Funded Island Medical program ($1.1M). The following chart summarizes the intended use of the carry forward balances of $70.1M:

The largest allocation or 22% is for employee obligations including accumulated professional development, leave and other contractual commitments. Research support is 18% of the total and is generally made up of commitments to individual faculty for research start-up, travel grants, etc. Another category of note is the Island Medical Program. This represents 8% and is not available for reallocation as it is externally targeted, specific funding.

The Ancillary appropriated fund balance of $17.7M is largely made up of parking reserves of which $10.6M is earmarked for capital (i.e., future parking structures). It is anticipated that a significant portion of this funding will be drawn down over the next year as the new parkade is constructed.

Unappropriated Expendable Funds – Statement 3

Total revenue across all five funds increased by $13.3M to $553.6M, representing an increase of 2.5% while total expenditures increased by $21.8M to $537.5M representing a 4.2% increase. On a total fund basis, total revenues of $553.6M exceeded expenditures of $537.5M by $16.1M. After transferring $4.0M to endowment principal and $8.6M from appropriated reserves, total unappropriated expendable fund balances increased by $20.7M. This increase is primarily in the Specific Purpose fund related to the positive investment returns that increased the endowment expendable balances of the UVic Foundation. Each of the fund balances will be discussed subsequently in this report.

Total revenue and expenditures are broken down by fund as follows:

General Operating Fund (GOF) – Schedule A

The General Operating Fund represents 60% of the university’s activities. Total General Operating revenues and expenditures are made up as

follows:

Total revenue in the General Operating Fund increased by $8.4M (2.6%) and total expenditures increased by $7.7M (2.4%). Government grants and tuition accounted for 95% of revenue while compensation costs (i.e., salary and benefits) accounted for 78.4% of total expenses.

While revenue exceeded expenditures by $12.7M, $10.6M was transferred to the other funds to cover the costs of commitments to a variety of capital and other projects and a net of $2.1M was transferred to appropriated reserves bringing the General Operating fund balance to zero, which is consistent with past practice. The net excess of revenue over expenditures of $12.7M represents 3.8% of total revenue compared to $11.9M and 3.6% of total revenue for the year ended March 31, 2013. The overall fund surplus results from planned savings to ensure there are sufficient funds for capital investment (equipment and buildings for example), as well as revenue and expense variances that are difficult to predict (for example, investment income, departmental revenue and vacancies).

The university’s provincial operating grant was $175.0M which was reduced $0.5M or 0.3% from the previous year. Other government grants include $6.3M of federal government grants, the majority of which is the federal indirect cost of research grant and $6.0M of other government grants representing funding from the University of BC specifically for the Island Medical Program.

Credit tuition increased by $8.0 M made up of $2.4M for domestic student fees reflecting the 2% increase in tuition fees (the maximum allowed by the Province of BC) and $5.6M of international student fees reflecting growth in enrolment of international students that have fees higher than the domestic rate of tuition.

Non-credit tuition increased by $1.4M due to strong enrolments in Continuing Studies and the Faculty of Business Executive Programs.

Investment income decreased by $0.9M due to lower returns on investments. The return on the university’s short term investments was 1.5%

compared to last year’s return of 2.2%.

The short term investments portfolio (recorded in both cash and long term investments) is managed in three pools providing daily liquidity along with enhanced returns from investments with a longer duration. The investments are as shown in the University Short Term Investments chart.

15,839 16,475 16,867 17,012 16,929

2,593 2,858 3,046 3,187 3,272

15,000

15,500

16,000

16,500

17,000

17,500

18,000

0

5,000

10,000

15,000

20,000

25,000

Undergraduate Headcount Graduate Headcount

Academic salaries increased by $6.6M reflecting retroactive payments to faculty. Support staff salaries decreased by $0.3M with 2013-14 salary increases arising from the settlement of collective agreements and progression through the ranks being less than the reduction due to restructuring and budget reductions. Employee benefits increased by $1.1M due to the higher salaries and retroactive pay.

Equipment additions, net of write offs, decreased by $2.9M reflecting a more normal level of expenditure after 2013 where expenditures were higher as a result of increased spending prior to the re-introduction of PST.

Scholarships, fellowships and bursaries increased by $2.1M reflecting the university’s decision to enhance undergraduate entrance scholarships with the objective of improving the quality and number of students accepting their entrance offer.

Ancillary Enterprises Fund – Schedule B An ancillary operation is a department that is required to be financially self-sufficient. That is, each operation must generate sufficient revenue to not only cover its annual operating costs, including any compensation changes, but also provide adequate funding to address building maintenance or renovation requirements as well as capital expansion needs.

Schedule B (page 35) of the attached fund accounting schedules show the financial results of university ancillary operations both on and off campus.

Off-campus Business Enterprises include the operations of the Broad Street commercial/residential rental properties owned by the university and the property rental and hotel operations owned by Heritage Realty Properties Ltd., both accounted for using the equity method of accounting. The hotel operations and rental properties, received as part of the Michael C. Williams’ estate, provide a large and sustainable

cash flow to the university. During the year $900K was provided by Heritage Realty to the university for use to support initiatives consistent with the wishes of the donor.

Off-campus Business Enterprises also include the Vancouver Island Technology Park Trust, accounted for using the equity method of accounting, and the operations of the University of Victoria Properties Investments Inc. The University of Victoria Properties Investments Inc. acts as trustee for the Trust and also manages the Marine Technology Centre owned by the university. The Vancouver Island Technology Park provides a range of commercial space for external high-tech companies and some UVic research and teaching activities. The Trust is intended to be self-funding with a return on investment provided to the university. During the year $400K was provided by VITP Trust which allowed for a transfer to the General Operating Fund to support university priorities.

The results of the on campus ancillary operations including the bookstore, housing food and conference services, parking and child care are summarized in the Ancillary Budget – Schedules K through O (starting on page 45).

Specific Purposes Fund – Schedule C The Specific Purposes Fund includes the expendable funds of the University of Victoria Foundation, the Foundation for the University of Victoria and the U.S. Foundation for the University of Victoria. It also includes the revenues and expenses of the LTD Trust as well as UVic Industry Partnerships.

Overall, revenue exceeded expenditures by $37.4M. Of this amount $8M was transferred with the majority added to endowment principal to protect against the eroding effects of inflation, and to Sponsored Research to provide funding to certain research centers who receive their funding from endowments. The Specific Purpose fund balance increased by $29.4M to $61.2M, of which $45.8M represents the expendable fund of the UVic Foundation.

Other highlights include:

Gifts, grants and bequests increased by $2.3M which included a $1.5M increase in non-government contracts related to BusinessExecutive Programs.

Investment income increased by $17.1, primarily within the UVic Foundation.

Most endowment funds benefiting the university and its students are held by the University of Victoria Foundation. The Foundation’s investments experienced its largest dollar return in its history with investment income of $45.1M representing a 13.5% return for the year ended March 31. With the receipt of $4.3M of endowment contributions less disbursements of $13.7M, the total market value of the UVic Foundation endowment fund increased from $319.3M to $355.1M, comprised of $309.3M of principal and $45.8M of expendable funds.

The Foundation’s investments are managed by professional investment counsel with separate managers for Canadian equity and Canadian fixed income mandates, global equity mandates split evenly between two managers, a real estate manager and an infrastructure manager. The Foundation’s investment policy provides for a target asset mix of 25% fixed income, 25% Canadian equities, 30% global equities, 10% real estate and 10% infrastructure. External investment consultants assist the Foundation’s Board in monitoring performance and considering an appropriate asset mix.

The Foundation’s endowment management policy follows a “total-return” approach with awards based on 4.0% of the December 31 inflation adjusted balance of the funds principal with an additional 0.5% available for funds with a market value in excess of 108% of inflation adjusted principal. In most years, an amount is capitalized to the principal of each endowment to protect against the eroding effects of inflation and during the year $3.8 million was added to principal.

Sponsored Research Fund – Schedule D

The Sponsored Research fund includes the revenues and expenses of the related entities including Oceans Networks Canada, Pacific Climate Impacts Consortium, TRIUMF and WCUMSS.

Sponsored Research revenues for the year were exceeded by expenditures by $14.9M although a net amount of $6.3M was transferred in from other funds with a net reduction of the fund balance by $8.6M to $46.9M. This balance represents external grant funding that has been received but not yet spent.

Revenues decreased by $30.1M (25%) to $88.6M while expenditures decreased by $18.1M (14.9%). Both are impacted by the timing of the large Ocean’s Observatories and ARIEL research projects whose revenues declined by $10.6M and $19.4M and expenses declined by $4.4M and $14.6M respectively.

Although total research revenues declined from last years high of $118.6M, after adjusting for the impact of the two large projects mentioned above, the university’s faculty continued their high level of success in attracting research grants and contracts. The university ranks second amongst Canadian comprehensive research intensive universities in total research funding, third in NSERC/CIHR grants and third in SSHRC grants.

The following shows the trend of sponsored research funding over the last 10 years.

Capital Fund – Schedule E

The Capital Fund includes monies designated for the acquisition of major capital assets and renovations, although capital assets such as equipment, furnishings, computer equipment and library holdings are recorded as expenditures in other funds to match the funding source.

Revenues in the Capital Fund increased by $12.9M due to an increase in Provincial funding of $3.4M related to routine capital and maintenance and the $10M of authorized capital borrowing for the construction of the CARSA / parkade structure.

Expenditures increased by $29.8M primarily due to the construction of the CARSA project which commenced this year.

Operating Budget Schedules F through J

Each year the budget office prepares operating fund budget schedules in order to provide management and the Board of Governors with information to assess the financial performance of the operations of the institution for the fiscal year. These schedules differ from the fund accounting statements (Statements 1 to 3 and Schedule A through E) in that they compare actual results, both revenue and expense, for the fiscal year against the budget plan whereas the fund accounting statements provide a comparison of actual results with those of the previous year. These budget schedules provide useful information to determine whether changes to budget or changes in activity should be made for the current or future fiscal years.

Another difference between the budget schedules and the fund accounting statements is that they are prepared on a function basis, as compared to an object basis (i.e. type of expense), which better reflects university budgetary responsibility, accountability and control.

The detailed budget versus actual schedules for the year ended March 31, 2014 include schedules F through J and can be found at pages 39 to 44. These schedules compare actual operating results for fiscal 2013-14 with the total budget for the year. The total budget column includes not only the base budget for each functional area or revenue item but also any non-recurring / one time entries for that year. These entries include one-time items such as a drawdown of carry forward or equipment reserves, budget reallocations between different functional areas or an allocation from a central budget (e.g., enrolment management funds or salary increase budget) to a department.

The following points should be kept in mind when reviewing these schedules:

unfavourable variances from the budget (i.e., either revenues or cost recoveries are less than budget; or expenditures are greater thanbudget) are shown with brackets;

benefits are budgeted and accounted for centrally and therefore costs within each function do not include benefits whereas the externalPSAS statement have benefits allocated to functions;

the revenue amounts per schedule F will not align with the revenue on Statement 3 or Schedule A of the fund accounting statements asstatement F shows department revenue separately. Department revenue will include revenue from sources such as provincial andfederal grants, student fees etc; and

variations from budget are sometimes offset by variations in related revenues or expenditures. For example, an apparent shortfall inrevenues may be offset by reduced expenditures or alternatively, an expenditure in excess of budget may be compensated for byincreased revenues or cost recoveries (see schedule I for a summary).

Operating Budget – Schedule F

Revenue and Expenditure Overview

Total budgeted revenue in 2013/14 was $321M comprised of the following sources:

The majority of this funding is allocated to support academic purposes as follows:

Year End Results

As noted above, for the fiscal year ended March 31, 2014 there was an excess of operating revenue over expenditures of $12.7M. This excess is a result of a number of items as follows:

Positive results as compared to budget including:o increased or unanticipated revenue;o favourable expenditures variances.

Planned reserves for future major capital purposes;

Planned sources of non-recurring funding;

Planned reserves for equipment replacement purposes; and

Costs related to capital and entities that are funded by operating but are presented as interfund transfers (below the line) whereas theyare budgeted as expenditures ($10.6M for 2013/14 as noted above).

From a budget point of view there was a positive result of $20.4M. This positive position is the result of $13.2M in additional revenue compared to budget and a $7.2M positive variance on expenditures.

From a budget responsibility point of view this variance is derived almost equally between central versus department budgets as follows: Central revenue (tuition, investment income,

internal financing and other) $ 5.5M

Central expenditures and recoveries (benefits, overhead and

centrally allocated budgets) $ 4.3M

Positive variance from central accounts $ 9.8M

Positive variance from departmental accounts $10.6M

Total $20.4M

Central Revenue Accounts

The primary sources of general operating revenue are tuition, government grant and investment income. In 2013-14 the additional revenue, as compared to budget, of $5.5M or 1.7% of the revenue budget resulted from:

1. Tuition revenue ..................................................................................... $ 5.3M

This result is close to the $5.0M in additional revenue projected in the quarterly reports to the Board. As noted in the Board reports this difference is mainly a result of greater than planned growth in undergraduate international students. The budget was developed based on enrolment plans to increase international undergraduate students by 100 FTE in 2013-14 whereas actual growth was more than 300 FTE.

2. Investment income ($.30M - $.33M) .................................................... $ (.03)M

The schedule shows a budget variance of $0.30M for investment income. This amount however is offset by negative variance of $0.33M from internal loans which is shown under administrative and general in schedule I (page 42) as it is an internal allocation. Therefore the Investment income budget, once internal financing is taken into account, had a small deficit in 2013-14. This shortfall is a result of the current very low interest rate environment.

As per the university policy to ensure multi-year financial planning for equipment replacement, $0.27M of investment income was allocated to department equipment reserves and $.14M to ancillary reserves increasing the budget shortfall to $0.38M. This overall shortfall was covered by the investment income reserve which was built during a high interest rate period in anticipation of the current low rate environment.

3. Other income ......................................................................................... $0.2M

This variance is an accumulation of small amounts from various accounts.

Impact on Future Budgets from Revenue Variances

For 2014-15 the tuition revenue budget approved by the Board has been increased by $4.2M to reflect increased undergraduate international enrolment. When developing the 2015-16 budget in the fall, enrolment levels will be reviewed to determine whether further adjustments should be made given early indications of potential further international growth in 2014-15.

Given the current interest rate environment and the budget shortfall this year, the current investment income budget can no longer be considered conservative. Investment income revenue will likely fall short of budget again in 2014-15, due to continued low interest rates and/or as a result of potential losses in the bond portfolio when rates do rise. This budget will be reviewed again in the fall to determine what, if any, changes should be made for 2015-16.

Other central revenue budgets will not be adjusted as the variances are considered insignificant.

Central Expenditures and Recoveries

Central accounts include compensation (benefits, salary, turnover etc.), overhead recoveries as well as contingency funds. In 2013-14 the positive central variance of $4.3M resulted from:

1. Benefits ................................................................................................... $2.2M

The benefit accounts continued to have a positive result this fiscal year. This result is largely due to on-going vacant positions (~$1.3M) and budgeting for annual increases even though actual increases are only a portion of the year (benefits on salary increases, increase in Employment Insurance or extended health, etc.).

2. Overhead recoveries ................................................................................. $0.2M

This variance is the result of additional overhead research income. Overhead recoveries fluctuate from year to year and are difficult to estimate given they are derived from contract research grants.

3. Centrally Allocated Budgets ....................................................................... $1.9M

As noted above centrally allocated budgets include budgets to fund compensation increases. They also include funds to top-up vacant positions once filled and a contingency amount to cover unforeseen events. These accounts are reviewed each year as part of the development of the annual budget to ensure they remain appropriate.

Impact on Future Budgets from Expenditure Variances

The favorable variance in the benefits budget is largely a result of vacant positions. The benefits budget will continue to have a favourable balance as long as there continues to be vacant positions.

The overhead variance is not considered significant but will be reviewed for 2015-16 based on information from research on projected contract revenue and the revenue trend over the last few years.

Centrally allocated budgets are considered prudent to provide funds for unforeseen events or strategic one time allocations. The total variance represents less than 1.0% of actual expenditures for the year.

Departmental Accounts

As noted above, departments had a year-end positive budget variance of $10.6M. Departments are expected, for the most part, to have favourable year end balances as they are required to put aside funds to address future equipment replacement and capital needs. In 2013-14 departments planned to allocate $3.4M to reserves for this purpose with actual transfers totaling $5.3M for equipment and $1.1M for capital.

The largest source of positive variance is department revenue which was $7.4M larger than budgeted. Departmental revenue is comprised of external funding (i.e., gifts, grants, sales, non-credit tuition, application and athletic fees, etc.), and as such is not consistent year to year, making it difficult for departments to predict or rely on for on-going expenditures. Given this fact, most departments budget this revenue conservatively. Some examples of revenue received in 2013-14 include donations; executive education, MBA non-credit, and MGB fees in Business; recoveries for marine science vessel usage; external cost recoveries (i.e., Vancouver Island Cancer Centre); one-time government program grants; auditorium fees; field school fees; Fine Arts shows (i.e., women’s choir, theatre); and athletic club fees .For some departments the positive revenue result is offset by increased expenditures (Schedule I).

The remaining variance is from a combination of vacant positions or partial year hires, favourable supply account variances or drawdowns from reserves or carry forward in excess of the actual costs.

At the individual faculty and department level, all were on or under budget when available carry forward is taken into account. Some units within a faculty or department however were over budget by small amounts. These deficits will be a first charge against the unit’s budget in 2014-15 or have been offset by carryover or alternatively have been covered at the faculty level.

Operating Budget – Schedule G

This schedule provides a breakdown of departmental revenue by functional area. Some highlights include:

The department with the largest budgeted departmental revenue is continuing studies at $13.6M. Continuing studies is a partially self-funding area and as such tuition for their programs is allocated to them directly and they are required to fund their own salary

increases. Revenues have also been used to fund capital expansion including the upcoming expansion of the Continuing Studies building.

Student services departmental revenue is mainly comprised of student athletic and recreation fees, physiotherapy fees, and externalfunding for Health Services.

Operating Budget – Schedules H through J

Schedules H and I summarize total budget, actual results and a comparison to the prior year of expenditure budgets by function. These schedules provide information on relative sizes of faculties and departments with the largest ones being the tri-faculties - Science at $24.0M, Social Sciences at $20.6M and Humanities at $19.8M. The other academic budget of $19.7M is comprised of many smaller functions such as Academic Advising, Learning and Teaching Centre, faculty professional development, faculty research - internal grants and travel, Research services and centres, overhead research, and academic related information technology.

While there was an across the board budget reduction of 4.0% in 2013-14 most areas saw very small increases in expenditures year over year. This is largely a result of compensation increases including the faculty arbitration award. Increases in nonacademic areas are mainly comprised of PEA and CUPE staff who received progress through ranges and cost of living increases.

Schedule J as noted previously compares additional departmental revenue against expenditures to demonstrate that additional revenue is often offset by additional expenditures. (e.g., Humanities variance in department revenue of $162K is largely offset by an expenditure variance of $100K).

Ancillary Budget – Schedules K through OSchedule B (page 35) of the attached fund accounting schedules show the financial results of university ancillary operations both on and off campus. The results of the off campus businesses were noted above. This section will focus on the results of the on campus ancillary operations as well as provide information on key performance indicators (KPI).

While these operations are often viewed as on campus “businesses,” it is important to know that while they are required to be financially self-sufficient, they also contribute to student life on campus and are therefore important service areas. The result of this approach is that each area may make program decisions that are not financially driven but program driven. For example, parking services subsidizes employee and student bus passes in an effort to reduce traffic to campus, residence services operates student life programs and food services has extended hours to support academic purposes. Given the above it is difficult to compare these operations to what appears to be similar off campus businesses.

Bookstore – Schedule K Schedule K (page 45) attached shows the financial results of the bookstore operations, which include the computer store, compared to budget as well as the results of the prior year. Both revenue and expenses for fiscal 2014 are less than the prior year as well as below budget. While

general merchandise revenue increased over the prior year this increase was offset by a decline in computer sales. While revenue decline, expenses were monitored carefully resulting in a modest excess of revenue over expenses of $89,000.

The following KPIs provide useful information against which to assess the operations of the Bookstore:

The above charts show that both gross margin as a percentage of sales as well as turnover are trending positively. The turnover rate of 8.1 times a year is strong compared to peer results which range from 3.0 to 11.3 and an average of 5.8.

Gross margins improved again in 2013-14 to 24.87%. This compares well with other similar sized institutional bookstores (peer institutions) as demonstrated by the comparison chart on the right.

With respect to labour costs, these tend to be higher given contractual agreements. The gross margin percentage however is consistent with our peers as outlined in the following charts:

A goal moving forward is to improve the labour cost percentage. The average of the peer group is 14.1%. The above comparison data is from the National Association of College Stores – Large Stores Group and has been shared on a confidential basis therefore the names have not been included.

Food Services – Schedule L

Schedule L (page 46) shows the results of the food service operation on campus. The results show that while revenue was less than budget for the year, total revenue grew 11.5% compared to the prior year resulting in $262,000 of excess revenue compared to expenses. This allowed food services to contribute $260,000 to their capital reserve at year end.

The majority of food service revenue (almost 55%) comes from on campus housing through the residence meal program with retail sales contributing 31%. With respect to expense, the majority is for labour (49%):

With respect to pricing of the mandatory meal program UVic’s pricing is comparable to peer institutions as follows:

The university’s food service department is a self-operation. Most campuses across Canada contract out their food operations therefore comparing information nationally can be problematic as, unlike bookstores, information on operations is not readily shared. There is information however on product pricing available through the Canadian College and University Food Service Association. Using this information, UVic’s retail pricing compares as follows:

While UVic’s prices are generally higher than the national average the differences for the most part are very small - most less than 10 cents per item. This price comparability is appropriate given that the department pays a very competitive wage compared to other operations and contributes to the overall university sustainability program through purchasing 85% of its products locally.

During 2013-14 Food Services commenced a key capital renewal project – the renovation of the University Centre dining room. This renovation will impact sales revenue in 2014-15 given this key facility will be closed for a number of months. Food services currently does not have any debt obligations but will have an internal loan after completion of this renovation project. The business case completed prior to the renovations supports that increased sales will be able to support the repayment of the internal loan over a reasonable time period.

Residence Services – Schedule M

For 2013-14, schedule M (page 47), shows that revenue for residence services grew by 4.8% compared to the prior year generating $1.5M in excess revenue over expenses which was contributed at year end to their capital reserve. This contribution to reserves is vital for the department to enable it to begin to address required deferred maintenance as well as plan for future expansion.

The majority of housing revenue (74%) is generated from dorm/apartment revenue with family housing the next largest at 14%. On the cost side salary and benefits make up 44% of costs:

Rates for dorm and apartment style rooms are low compared to peer institutions as follows:

Over the last couple of years an assessment by an external organization of the university’s deferred maintenance was undertaken. This assessment work included looking at the residence inventory and reviewed each building’s physical condition using an industry standard index called the facilities condition index or FCI. The FCI for housing is .40 which is considered poor to critical. The costs estimated to bring these buildings to good condition is estimated at over $150M. In developing the business plan options to address this issue, it has become clear that

room rates in 2015-16 will need to rise closer to the level at comparator institutions in order to generate sufficient funding to begin to tackle this critical issue. Consultation with students will occur in the fall / winter period.

Aside from an FCI metric, two other important performance metrics include occupancy rates and the department’s ability to cover its debt. Housing tracks occupancy levels at two points in time - October 1st and February 1st. For 2013-14, occupancy levels at October 1st were 102%. This above capacity occurred as a result of the first year guarantee. Common areas were converted to bedrooms in order to address the excess demand. By February 1st, the occupancy rate was 98%. With respect to debt, an important metric is the entity’s ability to cover annual debt service costs. One way to look at this is through a debt service coverage ratio which assesses net income before debt service compared to total debt service costs. Housing currently has debt service costs of $2.4M annually which means their net income before debt service obligations is $3.9M and their debt service coverage is 1.6. A ratio of greater than 1 means there is sufficient cash to service debt annually. For housing their ratio of 1.6 means that they have sufficient cash to cover their debt 1.6 times. With respect to a debt to equity ratio (total debt / total liabilities), housing’s is currently .4 which means more of the assets of the department are funded from equity (reserves) versus debt. A ratio of .5 means an even split.

Parking Services – Schedule N The parking services budget includes revenue and expenses associated with the management of parking on campus as well as the university’s travel options programs which includes, among other things, the student and staff bus pass programs. Schedule N (page 48) attached shows that revenue increased 2.7% year over year and slightly exceeded budget. Expenses were relatively flat year over year. From a budget perspective, compensation costs were slightly higher than budget as a result of one additional security officer hired during the year. Operating expenses were also slightly over budget as a result of higher credit card commission costs. At year end, $1.7M was allocated to the capital reserve. This funding will be used to fund some of the costs associated with the construction of the new parkade within the CARSA project.

The following charts outline some of the KPIs that parking services monitor:

While normally a goal for a parking operation would be to grow permit sales, the university is committed to minimizing vehicle traffic to campus. While there has been growth in 2013-14 as a result of an increase in the campus population, these charts overall demonstrate the success the university has had in encouraging faculty, staff and students to utilize alternative modes of transportation.

Employee and student parking rates, for an annual parking pass, are either less than or comparable to peers institutions as follows:

Another source of revenue for parking services is fines. While this is a source of revenue, the objective of issuing citations (fines) is to ensure the safety (e.g., parking in fire lanes) and access (parking without paying) of patrons. While the department issues over 19,000 fines in a year, very few are appealed as follows:

Of those appealed through an independent committee made up of presentations from the campus community, most are upheld with less than 1.5% reduced.

Child Care – Schedule O Child Care services provides full and part time day programs for children aged 6 months to 5 year and after school and summer programs for school age children. Schedule O (page 49) attached shows that revenue and expenses are fairly consistent year to year with small changes to reflect fee increases or changes in compensation. While child care services are expected to replace larger equipment, the facilities were provided through funding from government, donors and the university.

Total revenue for the year exceeded expenditures by $6K which reduced the accumulated fund balance deficit to $40K.

Child care monitors the rates of other comparable institutions to ensure parent fees are reasonable. The following chart compares our 2014 fees at various care levels to other educational institutions:

This chart shows that our child care fees are in line with other similar institutions.

Attachments: Consolidated Fund Accounting Financial Statements and Schedules (Statements 1 through 3 and schedules A through O)

Consolidated Fund Accounting Financial Statements and Schedules

for the

UNIVERSITY OF VICTORIA

Years ended March 31, 2014 and 2013

FUND ACCOUNTING - Statement 1

(Prepared without audit)

UNIVERSITY OF VICTORIABALANCE SHEET As at March 31, 2014 (in thousands of dollars)

2014 2013

ASSETSCash and temporary investments 117,127 107,506 Accounts receivable 59,981 53,394 Prepaid expenses 16,869 16,041 Inventories 3,438 3,847 Long-term investments 78,736 101,193 Endowment investments 357,095 321,646 (2014 cost $290,080; 2013 cost $281,144)

PLANT ASSETS Land and site improvements 54,937 54,747 Buildings 686,345 641,509 Equipment and furnishings 255,676 266,840 Library holdings 123,738 120,415

1,753,942 1,687,138

LIABILITIESAccounts payable and accrued liabilities 33,323 31,037 Deferred revenue 12,676 7,385 Long-term debt 56,574 48,228

Employee future benefits 20,341 18,655

FUND BALANCESExpendable funds

Appropriated (Schedule 2)General Operating 129,438 127,316 Ancillary Enterprises 17,688 15,006 Capital Fund (36,941) (23,552)

Unappropriated (Schedule 3)General OperatingAncillary Enterprises 10,156 9,224 Specific Purposes 61,202 31,801 Sponsored Research 46,947 55,546 Capital 12,563 13,590

Non-expendable funds (Schedule 4)Student Loan 73 73 Endowment Principal 309,344 301,252

EQUITY IN PLANT ASSETS (Schedule 5) 1,080,558 1,051,577 1,753,942 1,687,138



UNIVERSITY OF VICTORIASCHEDULE OF CHANGES IN APPROPRIATED EXPENDABLE FUNDS Year ended March 31, 2014 (in thousands of dollars) Additions and/

Balance Released or transfers Balanceat beginning to meet and/or deficits at end

of year expenditures during year of year

GENERAL OPERATING FUNDEquipment

Printing and duplicating 2,155 78 (478) 1,599 Network services 3,851 1,032 4,883 Rental properties 2,527 25 2,552 Other departments 13,107 1,333 864 12,638

Capital and renovation projects 25,539 8,914 14,400 31,024 Academic and administrative program development and operation support 12,345 2,987 5,601 14,959 Research support 14,227 3,388 1,702 12,541 Student assistance and financial aid 7,800 3,753 1,044 5,090 Employee obligations, training and support 16,289 1,898 996 15,387 Information technology and technical support 8,322 1,104 2,029 9,247 Other commitments 4,147 716 (1,057) 2,374 Contingency 4,299 252 1,094 5,141 Externally funded Island Medical Program 6,451 187 (885) 5,378 Insurance and utilities 3,977 206 4,183 Library prepaid expenses 2,280 2,280 2,442 2,442

127,316 26,891 29,013 129,438 ANCILLARY ENTERPRISES FUNDEquipment replacement and capital improvements

Bookstore 1,119 89 160 1,190 Food services 1,305 260 1,565 Student residences 1,955 249 1,475 3,181 Parking services 10,097 610 1,735 11,222 Child care services - - Heritage Realty Properties 530 530

15,006 948 3,630 17,688 CAPITAL FUNDPlant Assets funded to/from Appropriations

Business & Economics Building (4,796) 1,055 (3,741) Others (18,756) 16,657 2,213 (33,200)

(23,552) 16,657 3,268 (36,941)

TOTAL APPROPRIATED EXPENDABLE FUNDS 118,770 44,496 35,911 110,185

2013 COMPARATIVE 112,550 25,539 31,759 118,770



UNIVERSITY OF VICTORIASCHEDULE OF CHANGES IN UNAPPROPRIATED EXPENDABLE FUNDSYear ended March 31, 2014 (in thousands of dollars)

General Ancillary Specific Sponsored Total Total Operating Operations Purpose Research Capital 2014 2013

REVENUE AND OTHER ADDITIONSGovernment grants and contracts-provincial 176,523 1,489 1,010 10,266 6,203 195,491 216,029

-federal 6,274 760 58,044 65,078 72,901 -other 6,027 8,427 14,454 15,156

Student fees-credit courses 110,181 110,181 102,161 - non credit courses 11,703 2,959 1 14,663 12,338

- other 7,039 25 7,064 6,731 Gifts, grants and bequests 1,357 25 7,243 9,764 1,741 20,130 17,491 Sales of services and products 8,614 46,467 3,220 1,714 433 60,448 58,549 Investment income 3,056 928 45,485 15 49,484 33,383 Equity in earnings of long term investments 753 753 482 Other revenue 3,716 207 884 346 714 5,867 5,135 Capital borrowing 10,000 10,000 -

334,490 49,869 61,586 88,562 19,106 553,613 540,356

EXPENDITURE AND OTHER DEDUCTIONSSalaries - academic 98,677 2,266 5,738 106,681 99,908

- other instruction and research 15,639 1,563 24,605 41,807 41,072 - support staff 98,145 15,136 1,249 7,709 1 122,240 120,745

Total salaries 212,461 15,136 5,078 38,052 1 270,728 261,725 Employee benefits 40,391 3,276 822 5,038 49,527 48,063 Travel 5,734 58 1,316 6,129 13,237 12,979 Library acquisitions 7,377 418 7,795 7,855 Supplies and expenses 28,726 4,450 8,670 25,926 3,728 71,500 72,851 Equipment additions and replacements 4,916 326 350 7,807 694 14,093 17,615 Equipment rental and maintenance 3,430 134 57 1,386 1 5,008 5,050 Utilities 6,496 2,300 1,055 38 9,889 9,232 Scholarships, fellowships and bursaries 17,107 3 6,258 12,557 35,925 33,500 Cost of goods sold 14,386 14,386 13,972 Debt service 1,401 1,222 1,776 4,399 3,906 Construction and renovation contracts 355 431 2 1,846 38,419 41,053 29,003 Internal cost allocations (6,587) 2,644 1,190 3,655 (902) - -

321,807 44,366 24,161 103,451 43,755 537,540 515,751

TRANSFERS AND APPROPRIATIONSInter-fund transfers (10,561) (1,889) (8,024) 6,290 10,233 (3,951) (5,064) Appropriations released to meet expenditures 26,891 948 16,657 44,496 25,539 New appropriations (29,013) (3,630) (3,268) (35,911) (31,759)

(12,683) (4,571) (8,024) 6,290 23,622 4,634 (11,284)

NET INCREASE (DECREASE) DURING YEAR - 932 29,401 (8,599) (1,027) 20,707 13,321 FUND BALANCES AT BEGINNING OF YEAR - 9,224 31,801 55,546 13,590 110,161 96,840 FUND BALANCES AT END OF YEAR - 10,156 61,202 46,947 12,563 130,868 110,161

FUND ACCOUNTING - Schedule A


UNIVERSITY OF VICTORIACHANGES IN GENERAL OPERATING FUND Year ended March 31, 2014 (in thousands of dollars)

2014 2013

REVENUEGovernment grants and contracts -provincial 176,523 177,173

-federal 6,274 6,107 -other 6,027 5,777

Student fees-credit courses 110,181 102,161 -non credit courses 11,703 10,329

-other 7,039 6,615 Gifts, grants and bequests 1,357 2,423 Sales of services & products 8,614 8,366 Investment income 3,056 3,969 Other revenue 3,716 3,153

334,490 326,073

EXPENDITURESalaries - academic 98,677 92,064

- other instruction and research 15,639 14,670 - support staff 98,145 98,447

Total salaries 212,461 205,181 Employee benefits 40,391 39,258 Travel 5,734 6,036 Library acquisitions 7,377 7,537 Supplies and expenses 28,726 28,620 Equipment additions and replacements 4,916 7,808 Equipment rental and maintenance 3,430 2,979 Utilities 6,496 6,279 Scholarships, fellowships and bursaries 17,107 15,039 Debt service 1,401 1,187 Construction and renovation contracts 355 524 Internal cost allocations (6,587) (6,296)

321,807 314,152

TRANSFERS AND APPROPRIATIONSInter-fund transfers (10,561) (5,105) Appropriations released to meet expenditures 26,891 19,444 New appropriations (29,013) (26,260)

(12,683) (11,921)

NET INCREASE (DECREASE) DURING YEAR - -

FUND BALANCE AT BEGINNING OF YEAR - -

FUND BALANCE AT END OF YEAR - -

FUND ACCOUNTING - Schedule B


UNIVERSITY OF VICTORIACHANGES IN ANCILLARY ENTERPRISES FUND Off-Campus BusinessYear ended March 31, 2014 (in thousands of dollars) Enterprises

(1) UVic Heritage Van. IslandBookstore Food Student Parking Child Broad Street UVic Realty Technology Total Total

& Shop Services Residences Services Care Properties Properties Properties Park Trust 2014 2013

REVENUESales of services and products 12,370 13,583 13,503 4,310 969 874 858 46,467 44,759 Government grants - provincial 167 580 50 692 1,489 1,538 Gifts, grants and bequests 7 18 25 55 Investment income 14 14 18 98 784 928 1,046 Equity in earnings of long term investments 258 495 753 482

Other revenue 60 104 20 3 13 7 207 (600) 13,425 12,611 14,281 13,598 4,411 1,692 1,665 858 258 495 49,869 47,280

EXPENDITURESalaries-support staff 2,159 6,056 3,764 1,249 1,263 645 15,136 14,326 Employee benefits 440 1,425 713 292 293 113 3,276 3,107 Travel 21 2 28 3 4 58 57 Supplies and expenses 378 813 1,660 966 79 410 147 4,453 3,777 Equipment additions and replacements 9 56 238 21 1 1 326 378 Equipment rental and maintenance 14 34 44 39 3 134 165 Utilities 87 647 1,442 31 35 58 2,300 2,417 Cost of goods sold 8,562 5,823 1 14,386 13,972 Debt service 1,222 1,222 1,220 Renovation contracts 2 392 37 431 932 Internal cost allocations 777 (837) 2,617 79 8 2,644 3,766

13,226 12,449 14,019 12,121 2,680 1,686 506 905 - - 44,366 44,117

TRANSFERS AND APPROPRIATIONSInter-fund transfers (89) (249) (610) (585) 44 (400) (1,889) (2,523) Appropriations released to meet expenditures 89 249 610 948 2,755 New appropriations (160) (260) (1,475) (1,735) (3,630) (2,625)

(160) (260) (1,475) (1,735) - (585) 44 - (400) (4,571) (2,393)

NET INCREASE (DECREASE) DURING YEAR 2 2 2 (4) 6 574 (3) 258 95 932 770 FUND BALANCE AT BEGINNING OF YEAR 190 146 297 154 (46) 2,676 (9) 1,916 3,900 9,224 8,454 FUND BALANCE AT END OF YEAR 192 148 299 150 (40) 3,250 (12) 2,174 3,995 10,156 9,224

(1) Revenues are for external sales to faculty, staff and students and do not include $777,000 (2013-$1,032,000) of internal sales through the Computer Store to University departments. Of the internal cost recovery net of expenses, $129,000 (2013 - $113,000) represents the margin on those sales.

FUND ACCOUNTING - Schedule C


UNIVERSITY OF VICTORIACHANGES IN SPECIFIC PURPOSES FUNDYear ended March 31, 2014 (in thousands of dollars)

2014 2013

REVENUEGovernment grants and contracts -provincial 1,010 2,608

-federal 760 761 -other 9

Student fees - non credit courses 2,959 2,009 - other 25 116

Gifts, grants and bequests 7,243 4,991 Sales of services and products 3,220 2,609 Investment income 45,485 28,340 Other revenue 884 742

61,586 42,185



Total salaries 5,078 5,185 Employee benefits 822 964 Travel 1,316 1,110 Library acquisitions 418 318 Supplies and expenses 8,670 7,584 Equipment additions and replacement 350 318 Equipment rental and maintenance 57 58 Utilities 95 Scholarships, fellowships and bursaries 6,258 5,689 Construction and renovation contracts 2 18 Internal cost allocations 1,190 603

24,161 21,942

INTER-FUND TRANSFERS (8,024) (9,316)

NET INCREASE DURING YEAR 29,401 10,927

FUND BALANCE AT BEGINNING OF YEAR 31,801 20,874

FUND BALANCE AT END OF YEAR 61,202 31,801

FUND ACCOUNTING - Schedule D


UNIVERSITY OF VICTORIACHANGES IN SPONSORED RESEARCH FUND Year ended March 31, 2014 (in thousands of dollars)

2014 2013

REVENUE Government grants and contracts -provincial 10,266 31,926

-federal 58,044 66,033 -other 8,427 9,370

Student fees - non credit courses 1 Gifts, grants and bequests 9,764 8,163 Sales of services and products 1,714 2,381 Other revenue 346 765

88,562 118,638



Total salaries 38,052 37,033 Employee benefits 5,038 4,734 Travel 6,129 5,776 Supplies and expenses 25,926 29,842 Equipment additions and replacements 7,807 8,998 Equipment rental and maintenance 1,386 1,847 Utilities 1,055 407 Scholarships, fellowships and bursaries 12,557 12,772 Construction and renovation contracts 1,846 16,900 Internal cost allocations 3,655 3,277

103,451 121,586

INTER-FUND TRANSFERS 6,290 5,821

NET INCREASE (DECREASE) DURING YEAR (8,599) 2,873



FUND ACCOUNTING - Schedule E


UNIVERSITY OF VICTORIACHANGES IN CAPITAL FUNDYear ended March 31, 2014 (in thousands of dollars)

2014 2013

REVENUEGovernment grants and contracts-provincial 6,203 2,784 Gifts, grants and bequests 1,741 1,859 Sales of services and products 433 434 Investment income 15 28 Other revenue 714 1,075 Capital borrowing 10,000 -

19,106 6,180

EXPENDITURESalaries-support staff 1 - Supplies and expenses 3,728 3,028 Equipment additions and replacements 694 113 Equipment rental and maintenance 1 1 Utilities 38 34 Debt service 1,776 1,499 Construction and renovation contracts 38,419 10,629 Internal cost allocations (902) (1,350)

43,755 13,954

TRANSFERS AND APPROPRIATIONSInter-fund transfers 10,233 6,059 Appropriations released to meet expenditures 16,657 3,340 New appropriations (3,268) (2,874)

NET DECREASE DURING YEAR (1,027) (1,249)



UNIVERSITY OF VICTORIASCHEDULE OF CHANGES IN GENERAL OPERATING

UNAPPROPRIATED EXPENDABLE FUNDS - BY FUNCTIONYear Ended March 31, 2014 (in thousands of dollars)

Schedule FBudget vs. Actual

2013-2014 VariationTotal 2013-2014 from 2012-2013

Budget Actual Budget % Actual

Provincial Grants and Contracts 174,979 174,979 0 0% 175,556 Federal Grants and Contracts 6,174 6,174 0 0% 6,039 Other Grants and Contracts 6,025 6,025 (0) 0% 5,775 Student Fees Credit Courses & Other 104,568 109,832 5,264 5% 101,982 Investment Income 2,759 3,058 299 11% 4,015 Sales of Services and Products 86 84 (2) 0% 90 Other Revenue 752 994 243 32% 986

Total General Revenue 295,342 301,146 5,804 2% 294,443

Departmental Revenue G 25,898 33,344 7,446 29% 31,629

Total Revenue 321,240 334,490 13,250 4% 326,073

ExpendituresAcademic H 145,246 144,337 909 1% 140,062 Other Academic H 34,355 32,802 1,553 5% 33,263 Library I 16,376 16,116 259 2% 16,336 Student Awards & Services I 29,404 29,236 168 1% 26,408 Plant Maintenance I 24,831 24,821 9 0% 25,255 Administrative and General I 34,865 34,917 (52) 0% 34,282 Benefits 42,425 40,216 2,209 5% 39,159 Overhead Recoveries (470) (640) 170 36% (613) Centrally Allocated Budgets 1,931 - 1,931 100% -

Total Expenditures 328,963 321,807 7,156 2% 314,152

Transfers and AppropriationsInterfund transfers (10,667) (10,561) 106 (5,105) Appropriations released to meet expenditures 26,891 26,891 (0) 19,444

New appropriations (8,502) (29,013) (20,511) (26,260)

Total Transfers and Appropriations 7,723 (12,683) (20,406) (11,921)

Fund Balance at End of Year 0 (0) (0) 0

General Revenue

UNIVERSITY OF VICTORIASCHEDULE OF DEPARTMENTAL REVENUE - BY FUNCTION

Year Ended March 31, 2014 (in thousands of dollars)

Schedule GBudget vs. Actual


Analysis by Function Budget Actual Budget Actual

AcademicBusiness 696 965 269 860 Education 47 395 348 346 Engineering 3 169 166 1,281 Fine Arts 145 299 154 341 Human & Social Development 2 128 126 127 Humanities 55 216 162 329 Law 312 396 84 450 Sciences 117 835 717 659 Social Sciences 22 177 155 253 Medical Sciences 20 423 403 112 Cooperative Education - 7 7 12 Graduate Studies 9 12 3 82 Total Academic 1,428 4,023 2,595 4,853

Other AcademicContinuing Studies 13,606 14,557 951 12,797 Other Academic Projects 323 1,077 755 784 Total Other Academic 13,928 15,634 1,706 13,581

Library 360 392 32 284

Student Awards & Services 5,740 7,070 1,330 7,055

Plant Maintenance 2,165 2,868 703 2,713

Administrative and General 2,277 3,357 1,080 3,143

Total Departmental Revenue 25,898 33,344 7,446 31,629

UNIVERSITY OF VICTORIAGENERAL OPERATING FUND EXPENDITURES

ACADEMIC AND OTHER ACADEMICYear Ended March 31, 2014 (in thousands of dollars)

Schedule HBudget vs. Actual

2013-2014 Variation

Total 2013-2014 from 2012-2013

Academic Budget Actual Budget % Actual

Business 9,783 9,505 278 3% 9,194

Education 11,569 11,485 84 1% 11,065

Engineering 14,397 14,212 185 1% 15,373

Fine Arts 10,622 10,696 (75) -1% 10,359

Human & Social Development 17,886 17,571 315 2% 16,686

Humanities 19,821 19,920 (100) -1% 19,316

Law 5,062 4,875 186 4% 5,060

Science 23,954 22,744 1,210 5% 21,790

Social Sciences 20,564 20,491 73 0% 19,579

Medical Sciences 6,157 7,444 (1,287) -21% 6,392

Cooperative Education 4,478 4,442 36 1% 4,381

Graduate Studies 954 953 1 0% 868

Total Academic 145,246 144,337 909 1% 140,062

Other Academic

Continuing Studies 14,669 14,672 (4) 10% 13,497

Other Academic Projects 19,687 18,130 1,556 6% 19,765

Total Other Academic 34,355 32,802 1,553 5% 33,263

UNIVERSITY OF VICTORIAGENERAL OPERATING FUND EXPENDITURES

Year Ended March 31, 2014 (in thousands of dollars)

Schedule IBudget vs. Actual



Library

Library Acquisitions 7,517 7,068 448 6% 7,549

Library Operations 8,859 9,048 (189) -2% 8,757

Library Total 16,376 16,116 259 2% 16,336

Student Awards & Services

Student Awards 18,387 17,513 875 5% 15,232

Student Services 11,017 11,724 (707) -6% 11,176

Total Student Awards & Services 29,404 29,236 168 1% 26,408

Plant Maintenance

Utilities 5,736 5,877 (141) -2% 5,673

Other 19,095 18,944 151 1% 19,582

Total Plant Maintenance 24,831 24,821 9 0% 25,255

Administrative and General

Executive Offices 5,007 5,080 (72) -1% 4,851

Alumni and Development 3,200 3,304 (104) -3% 3,176

Administrative Registrar 7,530 7,768 (238) -3% 7,187

Budget and Capital Planning 1,210 1,220 (10) -1% 1,221

Financial Services 3,683 3,574 110 3% 3,737

Human Resources 3,549 3,511 38 1% 3,357

Chief Information Officer 3,881 3,785 95 2% 3,328

Internal Financing (462) (132) (330) 71% (220)

Other Expenses 7,267 6,809 459 6% 7,645

Total Administrative and General 34,865 34,917 (52) 0% 34,282

UNIVERSITY OF VICTORIASCHEDULE OF DEPARTMENTAL REVENUE AND EXPENDITURES - BY FUNCTION

Year Ended March 31, 2014 (in thousands of dollars) Schedule JBudget vs. Actual


Analysis by Function Budget Actual Budget ActualAcademic

BusinessDepartmental revenue 696 965 269 860 Expenses 9,783 9,505 278 9,194 Total (9,087) (8,540) 547 (8,334)

EducationDepartmental revenue 47 395 348 346 Expenses 11,569 11,485 84 11,065 Total (11,522) (11,090) 432 (10,720)

EngineeringDepartmental revenue 3 169 166 1,281 Expenses 14,397 14,212 185 15,373 Total (14,394) (14,042) 352 (14,092)

Fine ArtsDepartmental revenue 145 299 154 341 Expenses 10,622 10,696 (75) 10,359 Total (10,477) (10,397) 80 (10,018)

Human & Social DevelopmentDepartmental revenue 2 128 126 127 Expenses 17,886 17,571 315 16,686 Total (17,885) (17,443) 442 (16,560)

HumanitiesDepartmental revenue 55 216 162 329 Expenses 19,821 19,920 (100) 19,316 Total (19,766) (19,704) 62 (18,987)

LawDepartmental revenue 312 396 84 450 Expenses 5,062 4,875 186 5,060 Total (4,750) (4,480) 270 (4,610)

Sciences Departmental revenue 117 835 717 659 Expenses 23,954 22,744 1,210 21,790 Total (23,837) (21,909) 1,928 (21,130)

Social SciencesDepartmental revenue 22 177 155 253 Expenses 20,564 20,491 73 19,579 Total (20,541) (20,314) 228 (19,326)

UNIVERSITY OF VICTORIASCHEDULE OF DEPARTMENTAL REVENUE AND EXPENDITURES - BY FUNCTION

Year Ended March 31, 2014 (in thousands of dollars) Schedule JBudget vs. Actual

Medical SciencesDepartmental revenue 20 423 403 112 Expenses 6,157 7,444 (1,287) 6,392 Total (6,137) (7,020) (884) (6,280)

Cooperative EducationDepartmental revenue - 7 7 12 Expenses 4,478 4,442 36 4,381 Total (4,478) (4,435) 43 (4,369)

Graduate StudiesDepartmental revenue 9 12 3 82 Expenses 954 953 1 868 Total (945) (941) 4 (786)

Other AcademicContinuing StudiesDepartmental revenue 13,606 14,557 951 12,797 Expenses 14,669 14,672 (4) 13,497 Total (1,063) (115) 948 (701)

Other Academic ProjectsDepartmental revenue 323 1,077 755 784 Expenses 19,687 18,130 1,556 19,765 Total (19,364) (17,053) 2,311 (18,981)

LibraryDepartmental revenue 360 392 32 284 Expenses 16,376 16,116 259 16,336 Total (16,016) (15,724) 291 (16,052)

Student ServicesDepartmental revenue 5,740 7,070 1,330 7,055 Expenses 29,404 29,236 168 26,408 Total (23,664) (22,166) 1,498 (19,353)

Plant MaintenanceDepartmental revenue 2,165 2,868 703 2,713 Expenses 24,831 24,821 9 25,255 Total (22,666) (21,954) 712 (22,541)

Administrative and GeneralDepartmental revenue 2,277 3,357 1,080 3,143 Expenses 34,865 34,917 (52) 34,282 Total (32,588) (31,560) 1,028 (31,139)

UNIVERSITY OF VICTORIACHANGES IN ANCILLARY ENTERPRISES FUND - BOOKSTORE

UNAPPROPRIATED EXPENDABLE FUNDSYear Ended March 31, 2014 (in thousands of dollars)

Schedule KBudget vs. Actual



RevenueSales of services and products 12,370 12,408

1 Sales of services and products - internal 814 1,088 Subtotal sales of services and products 13,184 13,495

Government grants - provincial 167 167 Investment income 14 40 Other revenue 60 58

Total Revenue 14,775 13,425 (1,349) -14% 13,760

Expenditures

Salaries and benefits 2,321 2,599 (278) 2,681 Cost of goods sold 12,134 8,562 3,572 8,629

2 Operating expenses 270 1,991 (1,720) 2,564 Total Expenditures 14,725 13,152 1,573 16% 13,874

Transfers and AppropriationsInterfund transfers (89) (89) (1,599)

Appropriations released to meet expenditures 89 89 1,705 New appropriations (50) (160) (110)

Total Transfers and Appropriations (50) (160) (110) 106

NET INCREASE (DECREASE) DURING YEAR 0 114 114 (7) FUND BALANCE AT BEGINNING OF YEAR 190 190 197 Fund Balance at End of Year 0 304 304 190

1 Sales of services and products - internal - In Schedule B, internal revenue is part of Internal cost allocation in the Expenditure section

2 Operating expenses - Expenses are greater thatn in Schedule B, as in Schedule B, internal revenue is offset by internal expenses

UNIVERSITY OF VICTORIACHANGES IN ANCILLARY ENTERPRISES FUND -

FOOD SERVICESUNAPPROPRIATED EXPENDABLE FUNDS

Year Ended March 31, 2014 (in thousands)

Schedule LBudget vs Actual



RevenueSales of services and products - external 13,583 12,880

1 Sales of services and products - internal 1,208 568 Subtotal sales of services and products 14,791 13,448

Government grants - provincial 580 580 Investment income 14 35 Other revenue 104 (691)

Total Revenue 14,826 15,489 663 4% 13,372

ExpendituresSalaries and benefits 7,072 7,481 (409) 6,952 Cost of goods sold 5,360 5,823 (463) 5,343

2 Operating expenses 1,859 1,923 (64) 2,139 Total Expenditures 14,291 15,227 (936) -7% 14,434

Transfers and AppropriationsInterfund transfers - Appropriations released to meet expenditures - 1,050 New appropriations (535) (260) 275

Total Transfers and Appropriations (535) (260) 275 1,050

NET INCREASE (DECREASE) DURING YEAR 0 2 2 (12) FUND BALANCE AT BEGINNING OF YEAR 146 146 158 Fund Balance at End of Year 0 148 148 146



UNIVERSITY OF VICTORIACHANGES IN ANCILLARY ENTERPRISES FUND -

STUDENT RESIDENCESUNAPPROPRIATED EXPENDABLE FUNDS

Year Ended March 31, 2014 (in thousands)

Schedule MBudget vs Actual



RevenueSales of services and products 13,503

1 Sales of services and products - internal 10 Subtotal sales of services and products 13,513 12,894

Government grants - provincial 50 50 Investment income 18 15 Other revenue 27 22

Total Revenue 13,126 13,608 482 4% 12,981

ExpendituresSalaries and benefits 3,853 4,477 (624) 3,995 Cost of goods sold 1 (1)


Transfers and AppropriationsInterfund transfers (249) (249) Appropriations released to meet expenditures 249 249 New appropriations (1,940) (1,475) 465 (1,000)

Total Transfers and Appropriations (1,940) (1,475) 465 (1,000)

NET INCREASE (DECREASE) DURING YEAR 0 2 2 103 FUND BALANCE AT BEGINNING OF YEAR 297 297 194 Fund Balance at End of Year 0 299 299 297



UNIVERSITY OF VICTORIACHANGES IN ANCILLARY ENTERPRISES FUND - PARKING SERVICES


Schedule NBudget vs. Actual



RevenueSales of services and products 4,310 4,131

1 Sales of services and products - internal 61 62 Subtotal sales of services and products 4,371 4,193

Government grants - provincial - 32 Investment income 98 127 Other revenue 3 6

Total Revenue 4,309 4,472 163 4% 4,358

ExpendituresSalaries and benefits 1,467 1,541 (74) 1,526


Transfers and AppropriationsInterfund transfers (610) (610) (4)

Appropriations released to

meet expenditures 610 610 New appropriations (1,746) (1,735) 11 (1,625)

Total Transfers and Appropriations (1,746) (1,735) 11 (1,629)

NET INCREASE (DECREASE) DURING YEAR - 57 57 2 FUND BALANCE AT BEGINNING OF YEAR 154 154 152 Fund Balance at End of Year - 211 211 154



UNIVERSITY OF VICTORIACHANGES IN ANCILLARY ENTERPRISES FUND - CHILD CARE SERVICES


Schedule OBudget vs. Actual



RevenueSales of services and products 1,128 969 (159) 900 Government grants - provincial 542 692 150 709 Investment income - Other revenue 10 31 21 53

Total Revenue 1,680 1,692 12 1% 1,662

ExpendituresSalaries and benefits 1,483 1,556 (73) 1,506 Cost of goods soldOperating expenses 181 130 51 133

Total Expenditures 1,665 1,686 (21) -1% 1,639

Transfers and AppropriationsInterfund transfers - Appropriations released to

meet expenditures -

New appropriations (15) 15

Total Transfers and Appropriations (15) - 15 -

NET INCREASE (DECREASE) DURING YEAR (0) 6 6 23 FUND BALANCE AT BEGINNING OF YEAR (46) (46) (69) Fund Balance at End of Year (0) (40) (40) (46)

financial results and analysis for the year ended march 31 ... · vancouver island technology park...

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